Firstrade Rating: 
Overview of Firstrade
Although often overlooked, Firstrade offers a solid brokerage experience in several key areas. Let’s take a closer look.
Investments and Accounts
Firstrade is a brokerage firm focused on self-directed trading, without financial planning or advisory services. Customers can trade a range of asset classes in their brokerage accounts:
- Stocks (including some penny and OTC stocks)
- Fixed-income securities
- Options
- Mutual funds
- ETFs
- Closed-end funds
Firstrade offers several tax structures for brokerage accounts, including:
- Coverdell ESA
- Individual
- Joint (WROS & Tenants in Common)
- Custodial
- Trust
- IRA
In addition to Americans, citizens and residents of several other countries, mainly in Europe and Asia, can open accounts with Firstrade. International accounts can be set up online, making the process straightforward. Both domestic and international accounts are protected by SIPC, and Firstrade provides additional coverage with Lloyd’s of London.
Cash Management
In addition to self-directed investing, Firstrade offers a Visa debit card linked to brokerage accounts, with no setup or annual fees. Checkwriting is also available for U.S. accounts.
A $25,000 account minimum is required for the debit card, and there’s no ATM fee reimbursement policy. The program includes daily limits on purchases and withdrawals.
Through its clearing firm Apex, Firstrade offers an FDIC-sweep program for uninvested cash, moving idle cash to partner banks for FDIC protection up to $250,000 and earning interest.
Commissions and Minimums
Firstrade has no minimum deposit requirement and no annual, maintenance, or inactivity fees.
Firstrade’s zero-fee account charges no commissions on trades of stocks, ETFs, closed-end funds, mutual funds, or options. Options have no per-contract fees, and exercises and assignments are also free. Bond trades have markups or markdowns in prices, and primary market CDs cost $30 per transaction.
Free Firstrade Account
Get up to $250 ACAT rebate and $0 commission trades.
Open Firstrade Account
Mobile App
Firstrade’s mobile app is user-friendly but lacks certain features, such as a check-deposit tool and streaming video news. You can search for stocks, ETFs, closed-end funds, and options but cannot trade mutual funds or fixed-income products.
You can add assets to watchlists, which sync with the website or remain device-specific. Profiles for each asset show charts and options chains. Charts can be expanded horizontally, offering technical indicators but no drawing tools.
The app’s trade ticket supports short selling with options like trailing and stop orders. For options, it provides Greek values and potential gain/loss figures. The Analysis tab reveals additional options strategies.
Website
Firstrade’s website offers enhanced charting, including drawing tools such as:
- Cross Line
- Disjoint Angle
- Balloon
- Anchored Note
- Flag Mark
- Time Cycles
- Price Range
The charting system offers a full-screen mode and comparison tools with numerous technical studies.
A trade bar at the bottom of the website can be expanded to display a full order ticket for stocks and options. Security screeners with multiple search criteria make it easy to find assets. Profiles offer in-depth information thanks to Firstrade’s partnership with Morningstar.
For stocks, Morningstar’s free Analysis section includes details like fair value and star ratings, along with sustainability ratings, trailing returns, and fund portfolio composition.
Firstrade offers OptionsPlay, providing valuable options-trading insights, such as trade ideas and profit-loss diagrams.
Free Firstrade Account
Get up to $250 ACAT rebate and $0 commission trades.
Open Firstrade Account
Margin Service
A Firstrade brokerage account can be set up as either a cash or margin account. An existing cash account can switch to margin using either a downloadable PDF form or a simple online application (found under the Accounts tab in the Profile section).
Firstrade’s margin rates follow a tiered structure, starting at 13% for debit balances under $25,000, and going down to 9% for balances above $1 million.
The Firstrade trade bar displays initial margin requirements for entered ticker symbols, covering both long and short positions. The website also includes short-interest details. For a typical stock, the initial margin requirement is 50%, and the maintenance requirement is 25% in a non-concentrated account. For accounts where one position makes up over 60% of the total marginable value, a 50% maintenance requirement applies. Stocks priced below $3 are not marginable.
Customer Support
The website features a Service tab in the top-right menu, where users can access various self-help tools, including a Help Center with FAQs and a Form Center containing both PDF and online forms. A short video shows how to upload documents on the Firstrade website.
For more complex issues, Firstrade provides an email form for non-urgent inquiries and phone support for urgent matters. Phone service is available on weekdays from 8:00 am to 6:00 pm EST. Some representatives can assist in Mandarin and Cantonese.
Unfortunately, Firstrade’s website no longer includes a chat option, and the brokerage does not have any physical branch locations.
Bonus Services
IPO Access: Firstrade does not offer participation in IPOs, though there is an IPO list available under the Education tab on the website.
Securities Lending Income Program: Firstrade clients can earn additional income by lending out their stock shares. The enrollment form is available in the Profile section.
DRIP Service: Firstrade offers a Dividend Reinvestment Program (DRIP).
Automatic Mutual Fund Investing: Available.
Fractional-share Trading: Not available for stocks or ETFs.
Individual Retirement Accounts: Firstrade offers several IRA types, including Roth, Traditional, Rollover, SEP, and SIMPLE IRAs, with no termination or annual fees.
Extended Hours: Firstrade offers pre-market and after-hours trading. The order ticket on the website and app includes time-in-force options for these periods, allowing you to choose either or both.
Incentive to Open Account
Get up to $250 ACAT rebate and $0 commission trades.
Open Firstrade Account
Firstrade Review Summary
Firstrade offers a straightforward, low-cost brokerage experience with essential services but lacks advanced trading tools, which may lead active traders to seek alternatives.
Firstrade Commissions
| Investments | Price |
|---|
| Stocks and ETFs |
$0
|
| Options | $0 per contract |
| Mutual funds | $0 |
| Treasury Bills, Notes, Municipal and Agency Bonds, Zeros & Strips | net yield basis |
| CDs | $30 for primary market CDs, net yield basis for secondary market CDs |
Firstrade Account Fees
| Fee | Amount |
|---|
| IRA Setup Fee | $0 |
| Annual IRA Fee | $0 |
| Roth IRA conversion or Recharacterization Fee | $25 |
| Full Account Transfer Out | $75 |
| Partial Account Transfer Out | $25 |
| Outgoing Wire Fees (Domestic) | $30 |
| Outgoing Wire Fees (International) | $50 |
| Account Closing Fee | $0 |
Updated on 11/12/2024.
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